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Gaming Stocks' Q3 Earnings to Watch on Nov 1: BYD, CNTY

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The third quarter of 2016 is set to become the first quarter to move into positive growth territory after five sequential declines. Much of the spotlight is on the consumer discretionary sector as it is among the top-performing ones, driving the growth of the entire quarter.

Per our latest Earnings Preview report, as of Oct 28, 40% of the Consumer Discretionary companies in the S&P 500 index have reported their results. Growth rate for both earnings and revenues is in the positive territory – 8.2% and 8.4%, respectively. Moreover, the beat ratios for this sector have been noteworthy (64.3% for earnings and 50% for revenues).

Gaming Stocks in Focus

Coming to the Gaming Industry which belongs to the broader Consumer Discretionary sector, the space has been generally performing well this season.

Among the gaming stocks that have reported so far, Penn National Gaming Inc. (PENN - Free Report) and Churchill Downs Inc. (CHDN - Free Report) posted mixed results. While Penn National Gaming earnings beat the Zacks Consensus Estimate, its revenues missed the mark. On the other hand Churchill Downs failed to surpass bottom-line expectations while its top-line beat the same.

Meanwhile, Monarch Casino & Resort posted better-than-expected results with earnings and revenues beating the Zacks Consensus Estimate.

Two gaming companies are set to report their third-quarter 2016 numbers on Nov 1. Will these companies manage to put up a decent performance? Let’s take a look at what might be in store for them this quarter:

Boyd Gaming Corporation (BYD - Free Report) posted a negative earnings surprise of 44.83% last quarter. However, before that, the company surpassed earnings estimates in the three trailing quarters, bringing the average surprise in last four quarters to a positive 39.87%.

BOYD GAMING CP Price and EPS Surprise

Notably, our proven model shows that an earnings beat is likely for Boyd Gaming in the quarter. This is because the company has the right combination of the two key ingredients – a positive Earnings ESP and a Zacks Rank #3 (Hold) or better – to increase its odds of an earnings surprise. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

For the third quarter, the company has an Earnings ESP of +16.67% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Notably, the Zacks Consensus Estimate for the quarter’s earnings is pegged at 12 cents.

Century Casinos, Inc. (CNTY - Free Report) recorded a negative earnings surprise of 28.57% in the last quarter. In fact, the company posted negative earnings surprises in three of the past four quarters, with an average surprise of negative 33.32%.

We note that Century Casinos is unlikely to post a beat in the third quarter as it has a Zacks Rank #3 and an Earnings ESP of 0.00%. The Zacks Consensus Estimate for the quarter’s bottom line is pegged at 9 cents.

CENTURY CASINOS Price and EPS Surprise

Stay tuned! Check back on our full write-up on earnings releases of these stocks.

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